Horizontal Analysis of Income Statement
The following data (in millions) were taken from the financial statements of Walmart Stores, Inc:
| |
Recent
Year |
|
Prior
Year |
| Revenue |
$446,950 |
$421,849 |
| Operating expenses |
420,392 |
396,307 |
| Operating income |
$ 26,558 |
$ 25,542 |
a. For Walmart Stores, Inc., determine the amount of change in millions and the percent of change (round to one decimal place) from the prior year to the recent year for:
- Revenue
- Operatingexpenses
- Operating income
| |
Amount of Change
(in millions) |
Percent of Change
|
Increase or Decrease |
| 1. Revenue |
$ |
% |
|
| 2. Operating expenses |
$ |
% |
|
| 3. Operating income |
$ |
% |
|
b. During the recent year, .
c. The operating results of Target Corporation for the recent year are provided below.
| |
Amount of Change
(in millions) |
Percent of Change
|
Increase or Decrease |
| 1. Revenue |
$2,475 |
3.7 % |
Increase |
| 2. Operating expenses |
$2,405 |
3.9 % |
Increase |
| 3. Operating income |
$70 |
1.3 % |
Increase |
How should the operating results of Target and Walmart for the recent year be evaluated?